Nigeria’s foreign reserves have taken a significant hit, dropping by $359.91 million in just one week to settle at $40.56 billion as of January 13, 2025.
This sharp decline follows a brief high of $40.91 billion recorded on January 7, 2025, according to the latest figures from the Central Bank of Nigeria (CBN).
The decrease indicates the ongoing economic challenges facing the country as it grapples with rising inflation, dwindling investor confidence, and persistent fiscal instability.
Analysts warn that the continued downward trend in reserves could limit the CBN’s ability to stabilize the naira and support critical imports, adding to the burden on households and businesses already struggling with economic hardship.
Foreign reserves play a vital role in buffering a nation’s economy against external shocks, ensuring liquidity for international trade, and fostering investor trust.
However, Nigeria’s reserves have been under pressure due to fluctuating global oil prices, reduced inflows from exports, and a growing demand for foreign exchange.
The drop in reserves serves as a stark reminder of the fragile state of the economy and the need for decisive action to restore fiscal stability.
The development comes at a time when Nigerians are facing increasing economic strain, with the cost of living rising and unemployment remaining a significant concern.